The Welsh government has been handed powers that will allow the country’s to
raise £3bn in taxes, as well as borrow money for the first time.

Welsh ministers will be able to set business rates, as well as set new taxes, along with receiving the proceeds of local landfill and stamp duty levies.

The Treasury has released details of the radical devolution of fiscal powers announced around a month ago that could also see Welsh voters being given a referendum on income tax.

The changes follow recommendations from the Silk Commission that was founded in 2011 to look at the devolution of increased powers to Wales.

One of the biggest reforms will be of borrowing, with Wales allowed to run a “limited” deficit if its revenues prove insufficient to meet its spending plans.

“The package of financial powers we have published today will be a powerful tool, bringing greater financial accountability and transparency to the Welsh government,” said Danny Alexander, Chief Secretary to the Treasury.